BNB, the native token of Binance Smart Chain, experienced a decline on Friday, opening at around $305 before falling towards $297.93, showing a huge red candlestick.
This downward move began with a rejection at $312.53 on Wednesday, creating resistance at the same level. At the time of this writing, the price is still showing strong signs of falling towards the previous support level of $300.
If this support level cannot be held, the price may continue to decline towards the next support level at $263.93. However, if support holds, the price could bounce back and rise to new highs this year. However, the price is still above the 100-day moving average, which is usually a bullish sign for the price.
Technical indicators pointing to a continued downward trend for BNB
You can examine the charts using several indicators to figure out where the BNB price is headed next.
4-hour MACD: You can see that the histogram is below the zero line, indicating a downward trend.
Source: TradingView
We can also see that the MACD line has crossed below the signal line, indicating a continued bearish trend.
1-day MACD: On the daily chart, you can see that both the MACD line and the signal line are crossing and heading toward the 0 line, and the histogram is already below the 0 line, indicating a further downtrend.
Source: TradingView
4 hours crocodile If you look at a 4-hour chart using the alligator symbol, you will see that the jaw, teeth, and lips are all pointing downward and separated from each other. This has historically been a bearish signal and suggests further downside momentum.
Source: TradingView
1 Day Crocodile: Additionally, if we look at the Alligator indicator on the daily chart, we can see that the Alligator’s lips (green line) and teeth (red line) are crossing over its jaw (blue line), suggesting downward movement.
Source: TradingView
final thoughts
MACD and Alligator are widely used indicators, but they are not infallible and traders often combine them with other technical analysis tools to help them make better trading decisions.
Moreover, it is important to consider the larger market context, as false signals can arise, especially in erratic or sideways markets.
Token price struggles to hold support at $300 | Source: BNBUSD on Tradingview.com
Featured image from Dall.E, chart from Tradingview.com
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